Paying for cash and pulling my money back out in Mississippi?

24 Replies

So I’m looking at buying a number of properties in Mississippi. I can pay cash for a few of them, but at some point I would tap out. Has anyone successfully bought properties in Mississippi and been able to pull their money back out Through a refinance? It’s a number of the properties are under 50,000. Also I would need to use some sort of stated income/non-QM loans.

What market/area are you looking to be using the $50000 price point? I serve the north MS and the Memphis TN area (and invest here as well) and on today's market you're not buying much more than dirt only for $50k. A few war zones may work in that price point but even those are limited today. 

Originally posted by @Clint Bolton :

What market/area are you looking to be using the $50000 price point? I serve the north MS and the Memphis TN area (and invest here as well) and on today's market you're not buying much more than dirt only for $50k. A few war zones may work in that price point but even those are limited today. 

  Quite a number of them are over 50,000,  but some of them are under. The ones that are under I’m going to have to put some money into bringing them up to shape so they would have more than 50,000 invested. With that being said do you have an answer to my question above?

I have successfully completed cash out refinances here numerous times. My bankers who have done them for me do not do stated income and I don't know of any local lenders that do stated income loans here. Usually you do have to provide your financials and show the ability to repay along with the property appraising for the amount you need (they will usually only do up to 75-85% of the value). What area are they in? I may have a contact I can share with you. 

Originally posted by @Clint Bolton :

I have successfully completed cash out refinances here numerous times. My bankers who have done them for me do not do stated income and I don't know of any local lenders that do stated income loans here. Usually you do have to provide your financials and show the ability to repay along with the property appraising for the amount you need (they will usually only do up to 75-85% of the value). What area are they in? I may have a contact I can share with you. 

 Gulfport. 

As a Mississippi investor this is what I do. I initially pay cash for my properties. After I have rehabbed and rented it for a year I apply for a Wells Fargo first-place HELOC. The paperwork needed is a pain but they are one of the few lenders that will give HELOCs for investment properties. Closing costs are minimal, you just need to pay for the appraisal and even that can be rolled into the HELOC. They will usually offer you a teaser rate for a year comparable to the lowest interest rates available. I have multiple HELOCs so what I do is play musical chairs with them like you would balance transfers. I then call up WF and whichever HELOC I paid off I ask for another teaser rate. You need to borrow at least 10K at a time to get those. Hope this helps. I bought my first property with the help of my mother 10 years ago, but by using this strategy I know have a portfolio of ten properties.

I routinely buy and refi all my cash out in Gulfport and Biloxi. 
very easily done. I also have a few great  properties in the $50k range available. Currently have a duplex for $60k available. 

Several banks in the coastal area will refi out rental properties anywhere between 70-80%. Personally I’ve used community and Bancorp South. Pick up the phone and call some banks. They are typically going to be commercial type loan products. 

Originally posted by @Michael Albrecht :

Several banks in the coastal area will refi out rental properties anywhere between 70-80%. Personally I’ve used community and Bancorp South. Pick up the phone and call some banks. They are typically going to be commercial type loan products. 

 What was the refi amount? Do they have a minimum?

Originally posted by @Michael Albrecht :

60-80k. No idea about a minimum. 

 Did you have to jump through a whole bunch of hoops or was it asset based/credit score based lending?

Originally posted by @Michael Albrecht :

Several banks in the coastal area will refi out rental properties anywhere between 70-80%. Personally I’ve used community and Bancorp South. Pick up the phone and call some banks. They are typically going to be commercial type loan products.

will they loan to investors who live out of area.. I find many banks are great for locals but out of area investors can have a more difficult time.  

 

Originally posted by @Michael Albrecht :

Credit score and assets, takes 2-3 weeks to close. Not difficult, not as much paperwork to sign at closing when compared to traditional mortgage financing. 

You mentioned two banks Bancorp South and community. Which one was the easiest to work with? Was you using a LLC or with your personal name only?

Originally posted by @Clint Bolton :

Hey Pat, do you have a lender you can recommend to him there on the coast? I've found it helps when lenders know the area well.

I have used a few with differing results. Greg Peters at Bancorp South is my go to now. I've used Community Bank as well as Regions. I can send direct contact info if anyone needs it. 

The way I have pulled money out of my Mississippi properties is by getting a first-place HELOC through Wells Fargo. They are a pain but they are one of the few that will over HELOCs on rental properties.

@Joe S. I deal with Community Bank and they have proven to be a "common sense" lender for us.  What I mean is they look at the assets, credit history, and ability to pay (whether personally or via property income).  As for @Jay Hinrichs questions regarding local vs out of town, I can't say for certain.  As with any bank, the decision criteria may vary slightly lender to lender, but I can say I've dealt with multiple lenders at Community Bank and they have been swell to work with. 

I would recommend getting on the phone or in front of someone and telling them what you have going on.  A good banker is just like the rest of us, when they see a good deal, they want to help. If you seem to get any pushback on the out of state investor piece, a local partnership on this deal may be an option. 

Originally posted by @J. R. Crowell :

@Joe S. I deal with Community Bank and they have proven to be a "common sense" lender for us.  What I mean is they look at the assets, credit history, and ability to pay (whether personally or via property income).  As for @Jay Hinrichs questions regarding local vs out of town, I can't say for certain.  As with any bank, the decision criteria may vary slightly lender to lender, but I can say I've dealt with multiple lenders at Community Bank and they have been swell to work with. 

I would recommend getting on the phone or in front of someone and telling them what you have going on.  A good banker is just like the rest of us, when they see a good deal, they want to help. If you seem to get any pushback on the out of state investor piece, a local partnership on this deal may be an option. 

 Do you know their minimum?